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Problem 1: Julia Roberts pays her business rates in advance. For the year ended 30 June 2011, she paid £5,850 for rates. The rates are £450 a month and at the end of the previous year (30/06/2010), she had paid for one month in advance. At the 30 June 2011, she had paid for two months in advance. What is the expense for business rates that she should put in her income statement for the year ended 30 June 2011?
Select one:
a. £5,850b. £6,300c. £4,950d. £5,400
The bonds are dated January 1, 2017, and pay interest on June 30 and December 31. What is the total cash received on the issue date?
Examine the operating statements in detail, paying particular attention to the lines on which changes in net position and changes in fund balances are reported and develop a list of reasons why the two numbers are not the same.
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